Australian vintner Treasury Wine Estates Ltd. has flagged a A$558.4 million ($395 million) post-tax writedown ahead of its full-year earnings on Thursday. This move is part of a broader effort to tackle supply chain problems within its US market.

The winemaker, responsible for the iconic Penfolds brand, stated it intends to reduce the size of its US North Coast vintages starting from 2026. This strategic shift aims to address excess supply issues.

Additionally, the company will be writing down certain inventory intended for sale into bulk wine markets. This adjustment comes as the company manages its global inventory and market positioning.